Gold hits new record high above $2300

Gold continues to trend higher and posted new record high ($2354) in early Monday trading, in extension of last week’s 4% advance, which generated strong bullish signal on weekly close above psychological $2300 barrier.

The metal remains well supported by strong safe-haven demand, as well as expectations that the Fed will cut rates (as early as June) which deflates dollar.

Gold gained almost 14% since the start of the year, with the strongest acceleration higher seen in March, when the price rose nearly 10%, marking the biggest monthly gains since July 2020.

Bulls firmly hold grip despite strongly overbought technical studies (day/week/month) and eye next target at $2400, but some corrective action should be anticipated.

Broken $2300 barrier reverted to initial support, followed by rising 10DMA ($2256) and strong supports at 2200 zone (rising 20DMA / psychological) which should contain dips and mark a healthy correction of a larger uptrend.

Res: 2354; 2400; 2426; 2500
Sup: 2300; 2256; 2222; 2200